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Egypt and Qatar entered into a partnership earlier this week to develop a luxury real estate and tourism project along Egypt's Mediterranean coast. Qatari Diar, the real estate subsidiary of Doha's sovereign wealth fund, is set to invest about USD 29.7 billion in the initiative. As part of the agreement, Egypt will receive USD 1.8 billion worth of housing units and 15% of profits after Qatari Diar recovers its investment. The deal is intended to bring in USD 3.5 billion in fresh foreign direct investment, strengthening Egypt's economy and reducing its debt burden.
Egypt and Qatar have formalised a partnership earlier this week to jointly develop a high-end real estate and tourism venture on Egypt's Mediterranean coast. The collaboration forms part of Doha's broader investment commitment of USD 7.5 billion to Egypt. Advertisement
During the signing ceremony held in Egypt's New Administrative Capital, Prime Minister Mostafa Madbouly announced that Qatar would transfer USD 3.5 billion in December as payment for the land allocated to the Alam Al-Roum project. This payment is a component of the overall USD 29.7 billion investment pledged by Qatari Diar, the property arm of Qatar's sovereign wealth fund.
The project will include the creation of golf courses, marinas, and other luxury facilities across a 7-km undeveloped coastal stretch situated approximately 480 km northwest of Cairo. Egyptian Finance Minister Ahmed Kouchouk clarified that the USD 3.5 billion payment would be classified as fresh foreign direct investment rather than deposits, adding that the funds would help reduce Egypt's debt levels and improve its economic performance.
Madbouly noted that Egypt would receive housing units worth USD 1.8 billion along with 15% of the project's profits once Qatari Diar had recouped its investment costs. The Prime Minister also stated that negotiations with Qatari Diar had been lengthy and challenging before reaching an agreement.
For several years, Egypt has actively sought foreign investment, especially from affluent Gulf countries, to manage its substantial external debt and fiscal deficit. Sources familiar with the matter revealed that the International Monetary Fund had previously delayed disbursements to Egypt due to a lag in Qatari investments that the government had assured would materialise by mid-year.
Qatari Diar already has a notable presence in Egypt, with assets such as the St. Regis Cairo hotel and residential projects like CityGate and NEWGIZA on the outskirts of the capital. The current investment is viewed as a strategic counterpart to the United Arab Emirates' Ras El-Hekma development, which was agreed upon early last year.
Housing Minister Sherif El-Sherbiny, speaking on the sidelines of the signing event, mentioned that the Ras El-Hekma project was progressing well. He added that developers had obtained the land, deployed machinery, and commenced work, dismissing any speculation about delays.
The Egypt-Qatar collaboration marks one of the most substantial foreign investment deals in Egypt's recent economic history. The Alam Al-Roum project is expected to not only boost Egypt's tourism and real estate sectors but also strengthen economic relations between the two nations. With the inflow of USD 3.5 billion in fresh investment, the initiative is anticipated to support debt reduction efforts and improve the country's overall financial outlook, reinforcing Egypt's appeal as a destination for Gulf investors.
Source - Reuters
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